Business Baron

Pipeline Operator

Pipeline Operator: Throughput, tariffs and take-or-pay. A pipeline sells capacity. The shippers contract for a volume and pay for it whether or not they move…

Throughput, tariffs and take-or-pay. Get paid for the space in the pipe, used or not.

A pipeline sells capacity. The shippers contract for a volume and pay for it whether or not they move it, which makes the revenue unusually steady and the business unusually dull until something goes wrong. Then it is not dull at all. The safety case is a document the executive can enforce, a loss of containment is a criminal matter as well as an environmental one, and a section shut for repair means paying the shippers back for the space you sold them.

Setup costs
£12,000,000 to £70,000,000
Competition
Low
Category
Infrastructure & Utilities

Related businesses